Korea Gas (036460) Q1 2026 earnings summary

Executive summary

• 1Q 2026 saw a 3.0% year-over-year increase in total sales volume, driven by higher LNG demand for power generation, despite a decline in city gas sales due to warmer weather and sluggish industrial recovery.

• Revenue decreased by 7.3% year-over-year, primarily due to lower sales prices, even as sales volume rose.

• Operating profit increased by 9.1% year-over-year, and net income surged by 49.3%, supported by litigation proceeds, overseas dividends, and higher equity-method gains.

• The company operates as the sole wholesale natural gas supplier in Korea, with 28 subsidiaries and a diversified business portfolio including LNG, hydrogen, and overseas resource development.

• Maintains strong credit ratings (Aa2/AA/AAA) and robust governance, with no changes in capital stock or major shareholders.

Financial highlights

• Q1 2026 consolidated revenue was KRW 11,802.2 billion, down KRW 930.5 billion (7.3%) year-over-year.

• Operating profit reached KRW 910 billion, up KRW 76.1 billion (9.1%) year-over-year.

• Net income attributable to owners rose to KRW 548.6 billion, up from KRW 133.0 billion in Q1 2025.

• Basic EPS was KRW 6,271 (Q1 2025: KRW 1,463).

• Cost of sales declined by 8.6% year-over-year.

Outlook and guidance

• Ongoing investment in domestic and overseas projects, with 2026–2029 CAPEX forecasted at KRW 18–19 trillion annually.

• Expansion of LNG infrastructure, including new storage tanks and pipelines, to support future growth.

• Anticipates higher sales and operating profit in winter due to seasonal demand for city gas.

• Continues to expand hydrogen, LNG bunkering, and overseas resource projects.

• Ongoing investments in infrastructure and R&D to support long-term growth.